Not doing this could cost you millions of dollars

This past week the domain blogs were all telling the story on the acquisition and purchase price for Sumo.com.

This was a brilliant marketing tactic by the founder Noah Kagan.

The acquisition of a premium domain is unique opportunity and window for a brand to gain viral press and coverage.

Noah understood this opportunity and was proud to tell his story. People love a great story. The acquisition of a premium domain is a great story.

Domains are an asset that holds and appreciate in value. They impact the entire brand and positioning statement. When done correctly like Sumo.com they allow you to control the premium positioning for your brand and keyword.

Did he waste $5M on a 30 second super bowl? No, he invested in strengthening his brand with an asset that will appreciate in value and give confidence to investors.

Businesses that understand this are able to get a quick ROI on their domain purchase.

How many future customers found Sumo.com because Noah was proud to tell this acquisition story.

People love a great story.

If you acquired a premium domain, don’t waste this opportunity to make the rebrand or launch into a great story.

Just announcing that you are moving to a new domain has little impact and is not a story.

Telling the story behind the domain acquisition creates a lasting impact and impression on the reader. If done correctly this can be worth more than the cost of the domain acquisition.

The impact of this announcement will not last forever, however, can create significant momentum. This is especially important in a rebrand.

Sumo.com now owns the power and leadership position?

How many brands are vying to control the word SUMO in the minds of consumers?

BuzzSumo.com and SumoLogic.com are two large brands that could have also acquired Sumo.com.

I am sure these brands feel they do not need this domain because they are well known. This type of thinking does have consequences. Humans crave simplicity, partly because we are overwhelmed with information and need to make decisions quickly. This happens in a split second. We rank brands in our minds automatically.

Try it with any category and ask someone to list the top 10 brands. They have to start somewhere, and usually, it is at the top of their mind in order of prestige, quality or importance.

What this means is that a portion of their advertising will have a halo effect to Sumo.com because this is the dominate word in their brands.

Leadership positioning creates confidence which leads to higher conversions and awareness. This is not about SEO. Category defining and premium domains are about establishing preeminence from the first interaction.

BuzzSumo and SumoLogic have to be a little upset that they will never have the opportunity to control the simplified version of their domain and keyword “sumo.”

This was a rare and unique opportunity for their brands.

These companies acquired their perfect brand domain

Businesses that acquire the perfect domain for their brand almost unanimously say it was a great decision. Look at the list of companies below that now own the leadership position for their brand.

Hive.com

NamePros did an interview in January with the founder of Hive.com. Previously they were using the domain HiveTeams.com. The founder (John Furneaux) stated that it was worth the investment.

“I believe that a credible domain name is absolutely critical to success, especially for a B2B business. It was a top priority for us. We saw a 40% increase in traffic immediately after securing our preferred domain.” John Furneaux CEO of Hive.com

Ring.com

DomainSherpa did an interview in 2015 with the founder of Ring.com, Jamie Siminoff. Before they acquired com they were using the domain and brand DoorBot.com. Acquiring Ring.com allowed Jamie to rebrand and add strength to future product launches.

“I bought it because I think my sales could go up by X percentage by having a better domain.” Jamie Siminoff CEO

Beard.com

DomainSherpa did an interview with the founder of Grooming Network. They acquired the premium domain Beard.com in 2016. This is a great quote that carries over to any category.

“So, I do not think you can get better SEO than Beard.com, and I do not think you can get better just industry clout and just knowledge. I mean I do not think there is a better domain name for beards. I mean Beard.com is guaranteed the best domain name for beard enthusiasts. There is just nothing better. And so, out of that, I think it something that I could not have my competitors having.” Luke Webster CEO

Here is what the public does not see.

Acquiring a premium domain is not just about building the brand. Premium domains are also smart investments.

Domains are assets on the books and have real value. Investors understand and appreciate a premium domain because they can be sold if strategies change. Acquiring a premium domain gives confidence to investors because it shows an understanding of branding and marketing.

Domain names are regularly depreciated on the books over 5 years to 10 years. Talk to your accountant about the tax advantages of acquiring a premium domain.

Summary:

Congratulations to Noah for acquiring the domain Sumo.com.

Businesses that acquire premium domains should consider creating a story around the acquisition. When this is done correctly, this allows a brand to gain quick momentum and ROI for their acquisition.

Sumo.com communicated their story with confidence and pride which strengthened their brand. If a story goes viral, it will help you connect with new consumers.

Once a premium domain is acquired, it may never be available for acquisition because they become working assets.

Brands should seriously consider acquiring the perfect position for their brand before they are acquired.

Media Options is brokering several category defining domains such as:

Galaxy.com, Author.com, Plume.com, Sketch.com, Volta.com.

How can we help with your domain acquisition strategy? Send me an email and let’s talk, [email protected]

About the Author

Chris Zuiker

Since 1998, I have been involved in helping brands increase sales and conversion. As a senior domain broker, I quickly realized that most companies are devaluing their brand and limiting conversion with subpar domains.
So, I created a simple process to explain the value of a premium domain that helps my clients establish a leadership position, increase conversion and save money on marketing.
Download your free copy today at https://www.mediaoptions.com/domain-strategies-ebook About Page
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